From ‘Wealth of Nations’ to ‘Happiness of Nations’: Tracing the Path to the Concept of ‘Gross National Happiness’

Abstract

It is increasingly being acknowledged that for true well-being and for a fulfilling life, social and economic development should be accompanied with happiness or subjective well-being. Development theories encompass growth, rise in gross domestic product (GDP) and human development, but often ignore deeper issues of happiness. Economists have confined themselves to a narrower concept of wealth, basically because it can be measured and accounted. Well-being, including subjective well-being, is a broader concept. Both Aristotle in the western tradition ages ago and Dalai Lama today in the East agree that happiness is an end in itself and man pursues all other goals because they lead to happiness. The concept of happiness in economics was confined for many years to issues of growth and development. However, realising that social well-being and happiness cannot be reduced to a simple quantitative index like gross national product/GDP, thinkers have developed a comprehensive model to define and measure quality of life in holistic and psychological terms, i.e. Gross National Happiness (GNH). The paper attempts to explore and understand the concept of GNH, as developed in Bhutan. It is an attempt to trace chronologically the various theoretical approaches in the sphere of social wellbeing and happiness. The paper discusses in detail the ideas of defining the criterion of a happy society, identifying the metrics of GNH, measuring GNH and the possibilities of actually using the concept in assessing economic and social welfare.